eBay, Inc. Announces Redemption of Its Outstanding 6.00% Senior Notes Due 2056

Rhea-AI Summary

eBay announced its plan to redeem all outstanding 6.00% Senior Notes due 2056, totaling $750 million, as per the Indenture from October 28, 2010. The redemption will occur on March 1, 2020, with the total redemption price being the principal amount plus accrued interest. The transaction will be processed through The Depository Trust Company. This action reflects eBay's strategic financial management and commitment to optimizing its capital structure.

Positive

• Company engages in strategic financial management by redeeming high-interest notes.
• Redemption of senior notes will reduce interest expense moving forward.

Negative

• None.

SAN JOSE, Calif., Jan. 29, 2021 /PRNewswire/ -- eBay, Inc. ("eBay" or the "Company") (Nasdaq: EBAY) today announced its intention to redeem all of its outstanding 6.00% Senior Notes due 2056 (CUSIP No. 278642202) (the "Notes"), pursuant to its option under the Indenture, dated as of October 28, 2010 (the "Indenture"), by and among the Company, and Wells Fargo Bank, National Association, as trustee (the "Trustee"). The redemption date is March 1, 2020 (the "Redemption Date"), and the redemption price is equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, on the principal amount of the Notes being redeemed to the Redemption Date, in accordance with the terms of the Notes. As of the date hereof, there was $750,000,000 aggregate principal amount of the Notes outstanding. Payment of the redemption price will be made through the facilities of The Depository Trust Company.

About eBay

eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects millions of buyers and sellers in 190 markets around the world. We exist to enable economic opportunity for individuals, entrepreneurs, businesses and organizations of all sizes. The ebay.com marketplace and its localized counterparts, as well as the eBay mobile apps, are among the world's largest and most vibrant marketplaces for discovering great value and unique selection. For more information, visit ebayinc.com.  

Cautionary Note Regarding Forward Looking Statements

Certain statements herein are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Such forward-looking statements are often identified by words such as "anticipate," "approximate," "believe," "commit," "continue," "could," "estimate," "expect," "hope," "intend," "may," "outlook," "plan," "project," "potential," "should," "would," "will" and other similar words or expressions. Such forward-looking statements reflect eBay's current expectations or beliefs concerning future events and actual events may differ materially from historical results or current expectations. The reader is cautioned not to place undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of uncertainties, risks, assumptions and other factors, many of which are outside the control of eBay. A variety of factors include, for example, changes in the anticipated timing for the redemption of the Notes, business disruption during the pendency or following the redemption of the Notes. In addition, actual results are subject to other risks and uncertainties that relate more broadly to eBay's overall business, including those more fully described in eBay's filings with the Securities and Exchange Commission ("SEC"), including its annual report on Form 10-K for the fiscal year ended December 31, 2019 and subsequent quarterly reports on Form 10-Q. The forward-looking statements in this document speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement, except as required by law.

View original content to download multimedia:http://www.prnewswire.com/news-releases/ebay-inc-announces-redemption-of-its-outstanding-6-00-senior-notes-due-2056--301218332.html

SOURCE eBay Inc.

FAQ

What is eBay's plan for its 6.00% Senior Notes due 2056?

eBay intends to redeem all outstanding 6.00% Senior Notes due 2056 by March 1, 2020.

How much is eBay redeeming in Senior Notes?

eBay is redeeming a total of $750 million in outstanding Senior Notes.

What is the redemption price for eBay's Senior Notes?

The redemption price is 100% of the principal amount plus any accrued and unpaid interest.

When will eBay complete the redemption of its Senior Notes?

The redemption will be completed on March 1, 2020.